Walmart will start to hike prices soon in response to the escalating trade war between the U.S. in addition to China, former Walmart U.S. CEO Bill Simon predicted on Friday.
Walmart is actually one of hundreds of retailers in addition to additional businesses who have written letters to U.S. Trade Representative Robert Lighthizer protesting President Donald Trump’s tariffs on Chinese goods.
“So far, Walmart’s been able to absorb a lot of the pricing, in addition to the question is actually how long can they do that will in addition to whether they actually should,” Simon said on CNBC’s “Closing Bell.”
“As the cost of goods go up in any additional way or any additional design, the costs are mitigated in addition to they are passed through … You’ll see Walmart start to do that will soon,” he added.
Trump’s latest move came earlier This particular week, when he announced 10 percent tariffs on $0 billion in Chinese goods. The duties will rise to 25 percent on Jan 1.
Beijing retaliated with tariffs on $60 billion worth of American products.
Walmart wrote its letter to Lighthizer two weeks ago, before the latest tariffs were revealed.
Walmart warned the idea may hike prices on a wide range of products, including food in addition to personal care items.
“As the largest retailer inside the United States in addition to a major buyer of U.S. manufactured goods, we are very concerned about the impacts these tariffs would certainly have on our business, our customers, our suppliers in addition to the U.S. economy as a whole,” Walmart wrote.
Target was also among those pushing back against the tariffs. In its letter, dated Sept. 6, the retailer said the idea was “deeply troubled” by the trade war, which the idea said raises prices on everything coming from backpacks to playpens.
“The prices have to be passed through eventually, in addition to I think most retailers are starting to make plans to do that will,” Simon said.
Plus, “for tariffs to have any effect at all the consumer has to feel the idea in addition to change their buying behaviors to ensure that will then retailers in addition to manufacturers would certainly change.”
— CNBC’s Dawn Kopecki in addition to Reuters contributed to This particular report.
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